E-Mobility in Rally Mode! VW and Stellantis Face TÜV Inspections as dynaCERT, BYD and Tesla Show Steady Growth

VW and Stellantis: The European EV Market in Transition

The European automakers Volkswagen and Stellantis are feeling just how brutal the automotive market has become. The Volkswagen Group is sliding into an unprecedented structural crisis of massive overcapacity and eroding margins in its core European market. As demand for its expensive ID electric vehicles stagnates and China falls away as a reliable profit source, the Wolfsburg-based company is resorting to drastic cost-cutting programmes, including announced plant closures in its home country. Although the industry leader is now accelerating the launch of more affordable electric models to avert looming EU penalties, this is tearing deep holes in its already strained balance sheet. With monthly deliveries of well over 200,000 vehicles across all powertrain types, the industry giant is still managing to defend its leading position, but it is rapidly losing ground in the technological transformation of the sector. The former pride of German industry must completely reinvent itself under the tough restructuring committee to avoid being overwhelmed by its highly efficient competitors. Despite the gloom, analysts on the LSEG platform remain relatively upbeat: 12 of 25 experts give it the thumbs up and expect an average of EUR 102.50 in 12 months, implying around 50% upside potential for the Wolfsburg-based company.

Analysts remain optimistic about Stellantis and expect an average share price gain of EUR 2 from the current level of around EUR 3.95. That is noteworthy, given the mounting pressure on the group in the highly price-sensitive mass-market and small-car segments. The multi-brand giant is suffering from dangerously low capacity utilisation at its European plants, as customers have not embraced the group's electric vehicle platforms as much as hoped. To support monthly sales volumes of around 130,000 to 160,000 units, management is being forced to shift its focus to lower-margin mild hybrids. This strategic retreat exposes the company's vulnerability to competitors that can operate without the burden of costly legacy combustion-engine businesses. The struggle for survival is also evident in aggressive discounting and strict cost-cutting measures, putting the group's traditional brand diversity under severe strain.

Turnaround specialists will likely need plenty of patience with both automotive giants, but at least historically low entry prices are available.

BYD: Chinese Leader Overtakes Tesla

Chinese giant BYD is underpinning its dominance in the global electric vehicle segment with unprecedented momentum in the European market. In late summer 2026, the company catapulted its sales figures in the wider European region to a record level of 26,000 to just under 30,000 units per month. With this spectacular catch-up, the brand dramatically overtook long-standing rival Tesla in European registration statistics. The group is also cleverly countering the EU's punitive tariffs by increasingly focusing on advanced plug-in hybrids, which are less affected than purely electric vehicles. European production in Hungary is also set to start soon, which would then remove all punitive measures. With complete control over its battery value chain and major cost advantages, BYD is driving a brutal pace of price competition that is choking its rivals. As established Western players shrink, the Shenzhen leader is laying the groundwork to dominate Europe long term. Nevertheless, the chart shows a 3-year low at prices of around EUR 8.45. The company continues to impress on fundamentals, with analysts even calculating a 2027 P/E ratio of 9.6. The “Build Your Dreams” share has never been this cheap.

dynaCERT: The Rollout Can Now Begin

It is not just vehicle production that is seeing movement – the supplier market is also undergoing major changes. Canadian cleantech specialist in hydrogen-based combustion optimisation, dynaCERT, has recently made significant progress in two important markets: Vietnam and France. In Vietnam, the first order for series deployment from a logistics company is planned following successful field tests, while in France an existing customer has placed another order for HydraGEN™ systems. This repeat order, received in September, is an important signal of acceptance following the initial installation. Through its distribution partner IPMD, dynaCERT is also advancing further pilot projects and customer contacts in the transport, port and mining industries. At the “24 Heures Camions” truck event in Le Mans, the company showcased its technology alongside partners and a Dakar rally truck equipped with HydraGEN™. The racing results were impressive across the board.

The technological foundation is HydraGEN™. The system generates hydrogen and oxygen on demand onboard the vehicle and feeds the gases into the diesel engine's air intake system. The aim is to improve combustion efficiency, reduce fuel consumption and lower emissions. The HydraLytica telematics platform captures fuel consumption and emissions data. Verra certification of dynaCERT's methodology provides a basis for the potential monetisation of verified CO₂ savings. The retrofit concept is particularly attractive in heavy-duty transport, as existing fleets can continue operating without the need to replace entire vehicles.

dynaCERT's management explains the planned rollout in the EU and emerging markets in an interview with IIF presenter Lyndsay Malchuk.

The greatest scaling potential now lies in Southeast Asia. An estimated ten million-plus medium-duty and heavy-duty commercial vehicles are on the road there. Vietnam is dynaCERT's regional starting point: after successful pilot installations, the company received its first series order from a Vietnamese logistics company. In addition, several HydraGEN™ units were installed on trucks and container-handling equipment at one of the world's largest port operators. If deployment extends to other fleets and countries, 1% market penetration could mean around 100,000 systems; 5% would equate to approximately 500,000 units. While these are, for now, long-term scenarios rather than already secured sales forecasts, they illustrate where the Canadians could be heading in the future.

The decisive signal for the next step in growth is now repeat orders following the initial orders. If dynaCERT converts pilot projects into larger fleet orders and scales up its distribution partners, its market development could lead to a bigger leap. After years of technological development and preparation, the company could be entering a harvest phase that takes the stock to a new level. Research firm GBC has analysed the prospects and set an initial price target of CAD 0.75 – implying around 700% upside from the current share price of around CAD 0.095.

Conclusion

High interest rates, rising inflation, and soaring energy prices are shaking the capital markets. There are currently few winners outside the AI bubble. The automotive sector could now gradually become attractive, as the major markdowns are over and some stocks are already setting sail towards growth again. For risk management, broad diversification across sectors and countries is recommended.